A Study On The Impact Of Cost Stickiness On Firm Performance In Automotive Manufacturing Firms

The global economic situation is complex and varied,with many changes,and China’s manufacturing industry is in a challenging environment.With the implementation of the "three to go,one down,one up" policy based on supply-side reform,the task facing manufacturing enterprises is even more daunting."One down" refers to cost reduction.Cost is a relatively large part of manufacturing enterprises,good cost management is the only way to survive in a fiercely competitive environment.The automobile manufacturing industry has always been the pillar of the manufacturing industry,in recent years,with the rise of new energy vehicles a large number of new technology applications,the industry continues to fight,the price war competition more and more fierce,so the study of the automobile manufacturing industry related to the cost and business performance of the issue of good cost management is very necessary.The main research content is the impact of cost stickiness on business performance.Firstly,the research on cost stickiness at home and abroad is reviewed,focusing on the existence of cost stickiness,the influencing factors and the impact on performance.Then,the concepts of ’cost stickiness’ and ’firm performance’ are introduced and the impact of cost year on firm performance is examined,drawing on principal-agent theory,transaction cost theory and incomplete contract theory.Using the data of Shanghai and Shenzhen Ashare listed companies in China’s automotive industry from 2012 to 2021 as the research object,the Weiss model is used to calculate the cost stickiness of companies,and then a regression model is constructed to test the impact of cost stickiness on corporate performance of companies in the automotive manufacturing industry,and appropriate methods are considered to test whether cost stickiness in the automotive industry can improve corporate performance through equity structure adjustment.Finally,based on the empirical results,research conclusions are drawn and relevant suggestions are made for the management of costs in China’s automotive manufacturing industry.It is found that:(1)Cost stickiness in the automotive industry has a significant negative impact on firm performance.(2)The impact of cost stickiness on firm performance is more significant in non-state-owned enterprises than in non-state-owned enterprises.(3)Cost stickiness has a greater impact on firm performance in nonabsolutely controlled firms than in absolutely controlled firms.(4)Both equity concentration and equity checks and balances dampen the effect of cost stickiness on firm performance.